The $84 trillion wealth transfer is not a distant prospect; it is unfolding now. Advisors who delay introducing themselves to clients' children until after a death or disability are already behind, according to industry experts. The risk is clear: heirs often have their own financial professionals and may not retain the family advisor, regardless of the quality of the estate plan.
At Great Point Wealth Advisors, a registered investment advisor (RIA) based in the U.S., the firm employs an endowment model to address this challenge. Under this approach, a client's portfolio is structured to sustain current spending indefinitely, with principal preserved and modestly grown over time. This means the wealth is designed to pass largely intact to the next generation, making succession planning integral from the outset of the client relationship.
“From the very beginning of the planning relationship, we're already thinking about where this wealth is going,” said a senior advisor at the firm. This orientation forces advisors to understand not just a client's income needs, but their values and intentions for beneficiaries. Whether the recipients are children or charities, planning for the transfer of principal must be embedded in the initial strategy, not treated as an afterthought.
The timing of heir engagement is critical. A 28-year-old inheriting wealth faces different challenges than a 58-year-old who has built their own financial life. For younger beneficiaries, Great Point focuses on foundational concepts like compounding, portfolio mechanics, and investment processes. The firm may meet with a client's adult child in their 20s or 30s to review their 401(k) or explain risk management, not to map out an inheritance but to build familiarity and trust.
For older beneficiaries, often in their 50s or 60s, the conversation shifts. Many clients do not aim to create “easy street” for their children, but heirs deserve to know about potential inheritances to plan accordingly. Receiving a large sum at age 70 after decades of financial decisions made without that knowledge can be disorienting. Early disclosure allows for coordinated planning.
Family meetings are another key tool. Great Point insists that the first substantive interaction with heirs should not occur during a crisis, such as a parent's death or move to assisted living. Instead, the firm builds relationships in low-stakes settings, following the client's lead on how much to involve children. Some families prefer open discussions with heirs present early; others opt for gradual introductions. The goal is to make the process comfortable and productive.
A particularly satisfying aspect of the work, advisors say, is helping clients reduce their tax burden through lifetime gifting. Strategies such as annual gifting and grantor retained annuity trusts (GRATs) operate within IRS guidelines. Many clients mistakenly believe that gifts exceeding the annual exclusion amount trigger immediate taxes for the recipient. In fact, such gifts only reduce the lifetime exemption, which currently stands at nearly $30 million per married couple at the federal level.
This window of high exemptions may not last. Advisors who act now to help clients make substantial gifts can deliver measurable value that shows up not in quarterly statements but in what families ultimately retain. “That's the work that gives me the most pleasure,” one advisor noted. “And it's the work that clients remember.”
For advisors seeking to retain assets during the wealth transfer, the message is clear: engage heirs early, use a purpose-driven planning model, and leverage current tax rules. The $84 Trillion Wealth Transfer: Why Heirs Leave and How Advisors Can Retain Them offers further insights. Additionally, Wealth Transfer Success Hinges on Advisor-Family Trust, Not Just Asset Logistics underscores the importance of relationship-building.
